Core Scientific and TeraWulf reported almost $1.9 billion of mixed third-quarter revenue as they shifted from Bitcoin mining towards data-center internet hosting for AI prospects. Their earnings included $1.76 billion of pretax non-cash good points from revaluing monetary devices.
The November 5 Core Scientific disclosure and November 6 TeraWulf disclosure present totally different working outcomes for the quarter ended September 30, 2026. Core earned $72 million in working revenue beneath U.S. accounting guidelines; TeraWulf recorded an $88 million working loss. Core’s working outcome itself included a $19 million digital-asset fair-value achieve. Internet hosting now provides most of each corporations’ income, following their shift from Bitcoin mining toward computing leases. Assessing whether or not the conversions fund themselves requires the separate cash-flow and financing disclosures.
How non-cash good points lifted Core Scientific and TeraWulf income
Core’s $1,178 million consolidated internet revenue and TeraWulf’s $710 million add as much as roughly $1.89 billion.
In Core’s filing, the $1,034 million revaluation achieve comprised $964 million on legacy Tranche 1 and Tranche 2 warrants, $69 million on the legal responsibility portion of an AMD warrant and $1 million on contingent worth rights. Legacy devices provided the most important element of Core’s achieve.
Warrants give holders rights to purchase shares. Core’s AMD warrant accompanied July buyer leases, with its issuance worth recorded as an incentive lowering future lease income. Its legal responsibility portion is remeasured via earnings. Core attributed adjustments in its broader warrant and contingent-value line primarily to stock-price adjustments.
TeraWulf’s $728 million gain got here from revaluing Google warrants issued in trade for credit score help overlaying sure Fluidstack lease obligations. The credit score help can assist finance tasks. Remeasurement raises reported earnings via a non-cash accounting entry.
The revaluation good points enter earnings earlier than tax, whereas the net-income figures additionally replicate tax results and different good points. Core additionally recorded a $106.5 million tax profit, primarily from releasing a part of a valuation allowance related to its Polaris acquisition. TeraWulf recorded a $95 million achieve on promoting its Abernathy joint-venture stake.
Comply with the non-cash achieve
Legacy warrants provided most of Core’s $1.034bn pretax revaluation achieve. Its AMD warrant is a separate lease-linked instrument.
Google warrants supporting Fluidstack leases produced TeraWulf’s $728.4m non-cash achieve. Credit score help and money proceeds are distinct.
Giant accounting good points can raise internet revenue whereas working outcomes diverge.
Internet revenue is after tax; revaluation good points are earlier than tax. Separate scales examine earnings and working outcomes. These measures differ from money movement and can’t set up construction-funding adequacy.
The distinction additionally reaches per-share outcomes: Core reported $3.42 primary earnings versus $0.47 diluted, whereas TeraWulf reported $1.42 primary earnings and a $0.03 diluted loss. The diluted calculations embrace warrant-gain reversals within the earnings used per share, alongside share-count changes.
Internet hosting progress is seen in each corporations’ gross sales. Core’s colocation income reached $215 million out of $233 million in whole gross sales, up from $137 million within the previous quarter. Colocation gross revenue was $128 million at a reported 60% margin.
TeraWulf generated $63 million of high-performance computing (HPC) lease income, roughly 83% of its $76 million whole. Its $11 million HPC phase revenue excludes bills together with company overhead and depreciation that enter consolidated working outcomes, giving it a unique expense allocation from Core’s colocation gross revenue.
Development funding exhibits up elsewhere
For the 9 months ended September 30, Core generated $296 million of working money whereas spending $1,495 million on property, plant and gear and one other $677 million on asset acquisitions. Internet financing money influx was $3,200 million.
Over that very same nine-month interval, TeraWulf used $179 million of working money and spent $2,231 million on plant and gear purchases and deposits. It acquired $1,010 million of internet financing money, together with roughly $1,200 million from common-stock issuance.
Core says conversions for internet hosting buyer CoreWeave are largely funded by that buyer. Improvement beneath its AMD and different cloud-customer preparations would require further exterior financing. It plans project-level bond financing. Administration says present liquidity plus anticipated funding sources help deliberate growth and working wants.
TeraWulf’s Abernathy sale provided $250 million of money throughout Q3, distinct from the accounting achieve; additional installments remained anticipated. After quarter-end, it elevated revolving-credit commitments to about $400 million, with an extra conditional, uncommitted $150 million enlargement choice. Its post-quarter November 4 Google credit score help for leases with buyer Anthropic issues anticipated undertaking financing. The Fluidstack warrants behind Q3’s achieve relate to a separate association.
For the following part, the working cut up gives a extra helpful start line than the mixed revenue: Core has reached constructive working revenue, whereas TeraWulf nonetheless studies an working loss. Delivered internet hosting capability, money collections and financing commitments will decide how a lot of the development invoice the rising companies can carry.
